News: 0175805331

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The Collapse of Mid-Range Smartphones

(Tuesday December 31, 2024 @05:00AM (msmash) from the times,-they-are-a-changin' dept.)


An anonymous reader shares a report:

> The global smartphone market is splitting into two distinct segments, with the mid-range segment seeing its market share [1]plummet from 35% in 2021 to a projected 23% by 2027 , according to an analysis of data compiled by Goldman Sachs.

>

> The collapse of the mid-range segment -- $200-600 -- marks a stark reversal from 2021-22, when it held a steady 35% market share.

>

> "While mid-end segment used to provide balance between outstanding specifications and high performance-cost ratio, the demand has been declining due to the lack of revolutionary technology upgrades and a more conservative consumption of middle class amid macro challenges," the analysts wrote in a note reviewed by India Dispatch.



[1] https://indiadispatch.com/2024/12/31/global-smartphone-market-sees-dramatic-shift-as-mid-range-segment-collapses/



"Lack of revolutionary" what? (Score:3)

by Mr. Dollar Ton ( 5495648 )

The last "revolutionary upgrade" I've ever seen is Samsung bringing back the proper pen, after that imbecile from Apple removed it in favor of your oily fingers. That was like 10 years ago.

Re: (Score:3)

by ShanghaiBill ( 739463 )

Indeed. Smartphones aren't changing much between generations.

So, if you have $200 to spend, it's better to get a top-of-the-line refurb from a few years ago than a brand-new midrange phone.

That's why the middle of the market is hollowing out.

Samsung stopped selling mid-range in the US (Score:3)

by starless ( 60879 )

Samsung currently doesn't sell their mid-range A55 phone in the US.

The conventional wisdom on that is that they don't want to cannibalize their "flagship" phones.

Mid-range? (Score:2)

by JamesTRexx ( 675890 )

When I was looking for a replacement phone last year, 300 euro was called a budget price.

It's ridiculous anyway how fast money loses its value, and people lose their sense of value.

Low end (Score:2)

by eneville ( 745111 )

Low end, by most standards for me, £100 is a better investment and replace it every two years. Never seen much advantage with the mega expensive or mid range.

Why replace it every 2 years? (Score:2)

by Viol8 ( 599362 )

You clearly don't need bleeding edge performance so why not keep it until it breaks or apps no longer works? My samsung is 2 years old and for me its barely run in. My last phone I kept using for 11 years!

When low end (Score:4, Insightful)

by MemoryDragon ( 544441 )

is good enough, then the mid range has to suffer, the reason, phones are not so different anymore between the price segments and face it fast enough for your basic needs the difference often often is just in camera and branding and some speed, and many people do not care about branding!

It used to be different, if you did not buy high end then there were vital features missing or the speed not enough, but then the high end price became mid range and now high end often is more expensive than a notebook computer, and what you got in mid range quality a few years ago now is low range and the gap between high end and low end often is just price and a few minor things!

Re: (Score:2)

by EreIamJH ( 180023 )

Yep, the low end spec has caught up with the middle range spec. Same will happen to high-end spec phones as the cost of developing new features increasingly outstrips consumer willingness to buy.

Phones are on an inexorable path toward commodification.

Re: (Score:2)

by starless ( 60879 )

For me, the things that seem to be missing with low-end phones are wireless charging and the ability to use an e-sim.

For the high end, the thing that's missing is the ability to use a microSD card, which is a much cheaper way to add extra storage than buying the manufacturer's higher-storage models.

Most peoples needs were met years ago (Score:2)

by Viol8 ( 599362 )

A modern low end phone would performance wise blow apples top end offerings from only 6 or 7 years ago out the water. There's very little the vast majority of people need the performance of current mid or high end phones for, and if they do buy one its usually for fashion and/or bragging rights, not what it can actually do.

Breakable (Score:4, Interesting)

by fluffernutter ( 1411889 )

I'd much rather spend $400 cdn on something I'm going to lose or break than $1500 cdn. And there is just nothing compelling about mid tier phones. The cheapest phone I could find works fine for me. It's fast enough for everything I use a phone for, has a two day battery and expandable storage and even a headphone port. Mid tier phones may be missing one or all of those things and it's not like the cameras are going to be great until top tier.

Re: (Score:2)

by WolfWings ( 266521 )

And 90% of the difference in cameras is not the sensor, there's only a handful of those on the market in the end.

Install the Google PXL version of the camera app and you'll regain most if not all of the camera quality basically instantly because you'll get the properly massaged sensor output instead of the raw bits that the OEM vendor camera app spits out.

Sales not use has collapsed (Score:2)

by Alain Williams ( 2972 )

Marketing people are only interested is sales of new bling. Other than show-offs (look how rich I am) most people only replace a 'phone when their current one is no longer up to the job and so are content to keep one that is several years old. The same is true with a lot of consumer goods, once products mature people run them for longer.

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